The automaker Volkswagen's range of activities includes the design, manufacturing and marketing of automobiles. This division includes the brands Volkswagen, Bentley, Lamborghini, Scania, Audi, Skoda, Seat and Bugatti.
The finance division is a subsidiary of Volkswagen Group and Volkswagen Financial Services AG. It is in charge of different activities: vehicle finance, banking, insurance products, leasing, and fleet management. Volkswagen is a giant in the automobile industry. As a first European group, it had a turnover of 108,897 million euros and employs 329,000 people worldwide in 2007. In 2007, Volkswagen ranked first in market share in the classification of the European market. At the global level, Volkswagen was ranked as the fifth turnover in 2006.It was the fourth in 2008, dethroning the passage Daimler.
It is now possible to understand the value of such an alliance for Porsche. It now controls the largest European manufacturer, with the aim to eventually become a world leader at Toyota. Since Porsche has acquired the new European Company Statute, seen by many as a prerequisite for its merger with Volkswagen, bringing the two entities togther was inevitable. Porsche's interest to his counterpart thus goes beyond the simple financial investment and shows a strong commitment to family Piech to unite into one, the fate of two German homes.
One can see that Volkswagen makes most of its sales in Europe: 60.45% in 2007, despite the fact that the brand seems to shift to emerging markets and developing countries such as Asia and South America. The share of revenues from European sales remained relatively constant. The group is also present in Asia-Pacific: 6.92% (emerging markets), where its sales have increased over the past two years.
Often a company operates in different activities. In the case of Volkswagen, there is a core business: building cars and a secondary activity, managed by the Financial Services Division of Volkswagen. The group is both an industrial and a financial institution.
The Volkswagen Group is a group of very large size: it is number one in its market of choice: Europe. There is an effort to guide their operations to South America and Asia-Pacific that appears in the share of its turnover. Its business is still growing when integrating the exceptional year of 2006:6.45% for the last 5 years and relatively irregular deviation of 4.20. The results are smooth if one ignores the impact of this great year, with the growth dropping to 4.80% on average and the standard deviation is reduced to 0.90%.
The difference 0.42%. of is explained by the existence of exogenous factors to the amount of sales revenue, which also impacts on the total expense and increase their volatility. These results show that operating costs as well as sales have increased steadily over the study period.
Volkswagen demonstrated a clear ability to improve productivity over the last 5 years. The cost of sales, and distribution and administration costs are increasing in a lower proportion than sales. The total expense and sales revenue are highly correlated. Analysis of the sensitivity of the total expense to changes in sales revenue illustrates the major risk posed by fluctuations in sales for the cost of goods sold.
Tags: Volkswagen; leading automobile company; financial analysis;
[...] Analysis of results of the Volkswagen Group I.Descriptive study of turnover A. Position • Area: By Source Thompson Financial, the sector of Volkswagen is 3711: Motor Vehicles and Passenger Car Bodies "Establishments are primarily engaged in manufacturing or assembling full passenger automobiles, trucks, commercial vans and buses, and special purpose motor vehicles for highway use. This industry includes aussi Establishments primarily engaged in manufacturing and passenger frame bodies. Such Establishments may manufacture aussi vehicle shares; aim at Establishments Primarily Engaged in manufacturing motor vehicle except share and passenger frame because bodies are classified in Industry 3714. [...]
[...] Summary Taxation weighs heavily on the results relative in 2007). Loads have little effect on results over the period and the coverage ratio appears to be improving from 2007. In Volkswagen's case, fluctuations in EBIT are found only in part to the level of Net Income as shown by the correlation coefficient of 0.42 between changes in EBIT and net income ones. Indicative Bibliography www. volkswagen. com www. [...]
[...] • Size: Volkswagen is an industry giant. First European group, it has a turnover of 108,897 million euros and employs 329,000 people worldwide. In 2007, the ranking of automakers in the European market Volkswagen ranked No.1 in market share: 1. Volkswagen: PSA Peugeot Citroën: Ford: General Motors: Fiat: Renault: Globally, Volkswagen was ranked 5th according to the Turnover in 2006.It was 4th in 2008, dethroning the Daimler. We can now understand the interest of such an alliance for Porsche. It now controls the largest European automaker, with the ambition of eventually becoming the world leader ahead of Toyota. [...]
[...] The actual growth rate of Volkswagen on is average over the period 2004/2007.The year 2006 appeared again here as an exceptional year for the reasons mentioned above. ric growth of sales as% of sales % % % administrative spending sales, admin, dist It is interesting to note that the actual rate of growth of total spending was only against for sales. The cost of sales for their part does not increase at the rate of per annum on average over the period. This reflects the efforts of the company to improve its productivity. [...]
[...] The mean variation of gross profit as% of sales is 13.14 %.The mean of the operating profit as% of sales is 2.80 %.With the exception of 2004, Volkswagen seems to have managed to continuously increase its gross profit over the period studied. In contrast, the share of operating profit in the revenues are changing in ways that are far more chaotic, showing less control of its operating profit. The volatility of total spending had already highlighted this element above. The increase of of Total Expenses in 2006, normalized by sales may explain the surprisingly low result for 2006. [...]
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